The Toronto stock market was solidly in the red on Monday afternoon as strength in mining stocks amid higher metals prices was more than offset by weakness in energy, financials and most other sectors.
The S&P/TSX composite index dropped 64.25 points on the day at 15,344.08
The Canadian dollar gained 0.55 cents to 82.64 cents U.S.
Health-care was the biggest culprit among the losing groups, with Valeant Pharmaceutical falling $11.62, or 4.5%, to $244.36.
Information technology issues were also bruised, as Redknee Solutions plunged 19 cents, or 4.3%, to $4.21, and Descartes Systems Group dipped 52 cents, or 2.7%, to $18.75.
Also not faring well were industrials, in particular, Bombardier, which suffered 11 cents, or 4.3%, to $2.43.
Leavening out the negative activity somewhat was a jump in metals and mining stocks, especially, Sherritt International, stronger by 16 cents, or 7.3%, to $2.34, and First Quantum Minerals, up $1.13, or 6.4%, to $18.67.
Gold was also brighter, led by Alacer Gold, springing ahead 17 cents, or 6.4%, to $2.82.
ON BAYSTREET
The TSX Venture Exchange swooned 7.52 points to 690.10
All but four of the 14 Toronto subgroups fell, as health-care dipped 3.1%, information technology slid 1.5%, and industrials were weaker by 1%.
The four gainers were led by metals and mining, up 3.6%, gold, better by 1.7%, and global base metals, ahead 1.4%.
ON WALLSTREET
U.S. stocks reversed to trade mostly lower on Monday, with the NASDAQ and S&P 500 struggling to hold onto Friday's record close as investors digested earnings and looked ahead to the Federal Reserve meeting later in the week.
The Dow Jones Industrials slumped 42.17 points to finish the session at 18,037.97, with DuPont leading gains, and McDonald's and UnitedHealth the greatest decliner.
The S&P 500 index reversed and moved lower 8.85 points from Friday’s all-time high to 2,108.84. Health-care was the greatest decliner in the S&P 500, with the S&P Biotech ETF falling more than 5%.
The NASDAQ index plummeted 32.55 points from Friday’s record to 5,059.54
Earnings season continues this week, with Apple after the bell. The stock pared gains after earlier trading about 2% higher. Visa and health care names such as Gilead Sciences are among those reporting in the next few days.
In the last few weeks, stocks have trended higher despite the impact of the strong dollar and marked revenue misses on already lowered estimates.
Mylan plunged more than 5.5% after rejecting Teva's unsolicited $40-billion U.S. bid on Monday but remained open to future talks.
Investor focus will be on Apple fiscal second-quarter results due after the bell. TD Ameritrade's Kinahan noted that options were pricing a 4.8% move in the stock.
The Street expects the Cupertino, California-based powerhouse to deliver earnings of $2.16 U.S. per share on revenue of $56.06 billion U.S., according to analysts' estimates from Thomson Reuters. That's a 30% and 23% increase year over year, respectively.
And while Wall Street will be watching iPhone sales, investors will also be listening for an update on Apple's capital return program.
Earnings from the likes of Jones Lang LaSalle and Rent-A-Center are also expected after the market closes.
Before the bell, major earnings on Monday included Canon and Restaurant Brands.
Restaurant Brands International, the parent of Burger King and Tim Hortons, reported that first-quarter revenue more than doubled compared with the fourth quarter of 2014, helped by product launches and promotions.
In economic news, U.S. services sector expansion eased slightly in April from a seven-month high in March on a dip in new business growth, but the pace of hiring in the sector accelerated to its highest since last June, an industry report showed on Monday.
The U.S. Federal Reserve is meeting on Tuesday and Wednesday this week, with the conclusion and post-meeting statement due Wednesday.
The recent string of weak data and first-quarter growth expected at around 1% has convinced many in the markets that the Fed will not raise interest rates until September at the earliest.
Prices for 10-year U.S. Treasuries sagged, raising yields to 1.93% from Friday’s 1.91%. Treasury prices and yields move in opposite directions.
Oil prices gave back 32 cents to $56.83 U.S.
Gold prices hiked $27.20 to $1,202.20 U.S.
Related Stories
